Japanese stocks gained robust foreign inflows in the week ended June 3 as Shanghai's stimulus measures and easing of COVID-19 curbs alleviated concerns around regional economic growth, while improving earnings outlook of domestic companies boosted sentiment.

Overseas investors purchased a net 624.89 billion yen ($4.67 billion) worth of Japanese stocks last week, marking the biggest weekly inflow since Sept. 10, data from exchanges showed.

They bought derivatives of 665.93 billion yen, but sold 41.04 billion yen worth in cash equities.

Uniqlo owner Fast Retailing's upbeat domestic sales in May, and analysts' forecasts of record profits for Japanese auto companies this year also cheered investor mood.

The Nikkei share average surged 3.7% in a third straight week of gains last week, while the Topix index added 2.4%.

Cross-border investors acquired Japanese bonds worth 1.64 trillion yen, marking a fifth weekly net buying in a row, finance ministry data showed.

Japanese investors were net buyers in overseas equities with purchases of 738.8 billion yen, the biggest since Dec 3, but they exited foreign bonds worth 871.3 billion yen. ($1 = 133.8400 yen)

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Shailesh Kuber)


Reuters